The PolyNovo Limited (ASX: PNV) share price has remained flat on Monday as it announced its sales of NovoSorb BTM for the first half of the 2019 financial year of $3.75m. This is a 319% increase on the prior corresponding period.
With a market capitalisation of around $392 million, PolyNovo develops medical devices using its patented polymer technology. NovoSorb Biodegradable Temporising Matrix (BTM) technology can be used to close wounds incurred through trauma, burns, surgery or wounding. The claim is that NovoSorb provides better results than rival products or skin grafts.
PolyNovo restructured in 2014 and has since made NovoSorb its main focus. The technology has gradually been proving itself as sales have picked up and results have been positive. Today's update affirms this thesis but may have been expected by the market, as the share price closed down 0.83% at 60 cents.
It's worth noting that PolyNovo isn't making a profit. While it incurred a $6.1m loss in the 2018 financial year, it also had 59% revenue growth. Biotechnology companies generally don't make a profit until their product is properly commercialised, which PolyNovo is still in the process of.
PolyNovo shares have risen 10.2% in the last 12 months, compared to a return of -7.17% for the S&P ASX/200.
